Gapping strategy is taking advantage of a time difference. An example is borrowing short to lend long because that gives a better interest rate return for the lender (in a normal market where short-term rates are lower than those in the longer term).This strategy gives the lender an overall better interest rate as short rates are generally lower than long rates. Also in … [Read more...]
Archives for March 2010
Global Macro Strategy
The term global macro is used to classify the strategy of certain hedge funds—those that take positions in financial derivatives and other securities, on the basis of movements in global financial markets. The strategies are typically based on forecasts and analysis about interest rates trends, movements in the general flow of funds, political changes, government policies, … [Read more...]
Memory-Of-Price Strategy
Memory-Of-Price Strategy is a trading strategy that is set up on the assumption of the support and resistance points of double tops and double bottoms exert an influence on future price action after they have been broken. The thesis behind this setup is that it takes an enormous amount of buying power to exceed the value of the prior range of the double top breakout and vice … [Read more...]
What does XW in Stock Market Signify?
XW: It is a symbol used to signify that a security is trading ex-warrant. … [Read more...]
Voodoo Accounting
Voodoo Accounting system is an accounting system that uses unscrupulous methods, especially with a motive to please investors. For example, voodoo accounting may inflate profits by transferring funds to an off-the-books account set aside just for that purpose. It may also hide losses in subsidiaries or do other things to misrepresent a company's financial state. It is a form … [Read more...]